Now that we’re getting closer to your closing date, it’s time to gather your downpayment funds! Remember that in addition to the down payment, you need approximately 3.5% of the purchase price on top of the down payment available in cash for the closing costs.
Suppose any of these funds will be gifted to you from a family member. In that case, you need to let your mortgage lender know right away so they can get approval from the underwriter for the funds.
It’s best to transfer the down payment and closing cost funds into one account. This account must be disclosed to your mortgage lender, and you must let them know this is the account you will use for the down payment, as the funds have to be tracked.
One business day before your closing date, your mortgage lender or title company will email you a close estimate of the amount needed to close. Unfortunately, the total amount is usually not available further in advance as the title company needs to receive final figures from your lender (if utilizing a mortgage).
Amounts over $2,000 must be paid for with a cashier’s check. Title companies are not allowed to accept personal checks over this amount nor are they allowed to accept cash.
If the title attorney is unable to give you the exact amount due by the end of the day, an estimate will be provided by your lender.
Lastly, explain to your employer that you will need to leave for a little while the day before closing to obtain the cashier’s check for your downpayment funds and ensure that it is OK with them.
At closing, any overage/extra money you paid will be refunded back to you at the very end of the closing via a check.
Wiring Warning For Downpayment Funds
PLEASE NOTE: Several hackers and scammers have been lately trying to divert (i.e., steal) closing funds to their personal accounts and away from the title companies. DO NOT FOLLOW WIRE TRANSFER INSTRUCTIONS SENT FROM ANYONE WITHOUT CONFIRMING VERBALLY WITH US FIRST.